FranchiseVerdict
Freshii logo
FV-01002·MODERATEExcellent86

Freshii

Food & Beverage - Full ServiceFranchising since 2008Website
Investment
$173K – $641K
14th pct Full Service
Avg revenue
57th pct Full Service
Royalty
6.0%
54th pct Full Service
Units
52
73rd pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $173K – $641K including a $30K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 66/100. SBA loan default rate of 0.0% across 44 loans (below the industry average).
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Freshii Development, LLC
Parent company
Foodtastic, Inc.
Incorporated in
Delaware
HQ
27 North Wacker Drive, Suite 426, Chicago, Illinois 60606
Auditor
KPMG LLP
Audited financials
Franchisor revenue
$2.3M
vs $1.6M prior year
⚠ Going-concern note
Disclosed in FDD 2023
Status as of 2023; may have been resolved in a later filing we don't yet have.

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Freshii unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $173K–$641K
Working capital
$
FDD reports $10K–$60K

Unlevered ROIC · per unit

26%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$116K
EBITDA margin
15.5%
Total invested
$442K
Payback
46 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Freshii franchisees operate fast-casual juice bars, smoothie shops, and health-focused quick-service restaurants serving fresh-pressed juices, açai bowls, salads, and protein-based meals. Day-to-day operations involve inventory management of fresh produce, customer-facing POS transactions, staff scheduling, and maintaining brand consistency across menu preparation and store presentation. Locations typically serve lunch/breakfast-focused dayparts in high-traffic retail or mall environments.

CEO
Peter Mammas
Founded
2008
FDD year
2023
States available
20

Item 7 · what it costs

The Vitals

Total investment
$173K – $641K
All-in to open one unit
Liquid capital
$10K – $60K
Cash you must have on hand
Franchise fee
$30K
Royalty
6.0%
Gross Sales · typical 6–8%
Ad fund
1.5%
typical 3–5%
Total fee load
7.5%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
52
Opened
1
Last reporting year
Closed
12
Turnover rate
23.1%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
25.0%
Net growth (yr3)
-17.5%
Net unit change last year
3-yr CAGR
-40.2%
Compounded over last 3 years
2021
52-11
Franchised units
2022
63
Franchised units
2023
87
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 25 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 25 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
44
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

66
Risk · 0-100
MODERATE66 / 100

Freshii presents HIGH RISK due to contracting unit base (-17.5% YoY), going concern status, litigation history, zero financial transparency (no Item 19), and an unclear value proposition in a declining health-food category.

Score breakdown · what drove the 66 / 100 rating

  1. 01MINORSystem contracted 17.5% year-over-year (-9 units from ~52), indicating accelerating franchisee departures and potential market saturation or operational challenges
  2. 02HIGHGoing Concern warning signal suggests franchisor may face viability issues; combined with unit decline, raises questions about long-term support and system sustainability
  3. 03HIGHTwo breach of contract litigations (Lettuce Eatery Canada affiliate and Kore Meals/Freshii Development) indicate internal conflicts, partner disputes, and potential franchisor-franchisee relationship friction
  4. 04MINORNo Item 19 disclosure (average unit volumes, revenues, or profitability) prevents validation of ROI claims; $172.5K-$641K investment range lacks transparency on realistic returns
  5. 05MED6% royalty on undisclosed gross sales creates cash flow risk; without knowing average unit economics, franchisees cannot assess true profitability or break-even timelines
  6. 06MEDCompetitive QSR segment (health/juice bars) has high saturation and declining consumer traffic post-2020; Freshii's unit decline may reflect broader market contraction, not just brand weakness

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
2
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Ontario, Canada

Item 11

Training & Operations

Classroom training
39 hrs
On-the-job training
80 hrs
POS system
Oracle
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

61 numbers

Locked
(416) 712-••••
Shawn Saraga,
(312) 863-••••
The franchisor is Freshii Development, LLC, located at
IL
(905) 265-••••
KPMG LLP

One-time purchase · CSV download · Validation questions included

FDD download

Freshii · FDD (2023) PDF

Single-page checkout · instant download · CSV export of contacts available separately above